Vision Media Group International | News
28 September 2007 Restoration of Trading on AIM and Funding Update
Following the announcement of 4 September 2007, ScreenFX plc (AIM:SFX), the digital advertising and communications specialist, announces that it has secured £600,000 of further funding with an additional £330,000 by way of a convertible loan which is expected to be received within two weeks. Subsequently the Group has requested the restoration of trading of its shares on AIM with effect from 28 September 2007.
The Group has raised a sum of £600,000 from institutional investors in exchange for the issue of 150,000,000 new Ordinary Shares at a price of 0.4 pence per share, plus share warrants on a one for three basis at a price of 0.25 pence. In addition, the Group has entered into heads of terms to raise £330,000 in the form of a convertible loan ("Loan") from Trafalgar Capital Specialised Investment Fund. It is anticipated that legal agreements will be agreed and signed, and the proceeds of the Loan will be received by the Company within two weeks. As a consequence, the Directors (Eric Anstee and Mike Cottman) and advisers have agreed to convert existing loans ("Conversion"), premiums and associated interest of approximately £600,000 into equity on the same terms as the institutional investors. David Clarke (being the only independent Director) considers, having consulted with Seymour Pierce, that the terms of the Conversion are fair and reasonable insofar as the shareholders of the Company are concerned. These transactions will provide the Group with total new equity of £1.2 million and loans totalling £330,000.
Furthermore, the Group has also reached an agreement, in principle, to sell its TrainFX franchise for the sum of £2 million to in cash. This transaction is subject to due diligence, the necessary approvals, fundraising by the acquiring group, and the signing of the finalised contract. In the event that the disposal of TrainFX does not proceed within three months, the Company will need to raise £2 million in order to continue trading.
Application has been made to the London Stock Exchange for the 150,000,000 new Ordinary Shares, the subject of the institutional placing, to be admitted to AIM, which is expected to become effective at 8.00a.m. on 28 September 2007.
Mike Cottman, Executive Chairman of ScreenFX, commented: "The proceeds of the current fund raising and receipt of the £330,000 will provide us with the necessary working capital to reach a point whereby we can complete the TrainFX transaction. This in turn will allow us to continue to grow our malls business successfully. We expect to complete this transaction within a three month period. The confidence and support shown by our institutional investors has been encouraging during this period of reconstruction, and now we can look to the future to deliver a stronger, more valuable mall business."
For further information:
| ScreenFX plc | |
| Mike Cottman, Executive Chairman | Tel: +44 (0) 161 428 5544 |
| mikec@screenfx.com | |
| Seymour Pierce Limited | |
| Stuart Lane / John Depasquale, Corporate Finance | Tel: +44 (0) 20 7107 8000 |
| stuartlane@seymourpierce.com | www.seymourpierce.com |
| Media enquiries: | |
| Abchurch | |
| Henry Harrison-Topham / Gareth Mead | Tel: +44 (0) 20 7398 7700 |
| henry.ht@abchurch-group.com | www.abchurch-group.com |